After the Supreme Court struck down President Joe Biden's student loan forgiveness program, supporters of student loan relief are intensifying their efforts to find alternative paths to alleviate the burden of college debt. One such strategy being considered involves invoking a 1965 law, which activists believe could provide legal grounds for canceling student debt. In response to the court ruling, supporters planned a rally on the Supreme Court steps, followed by a march on the White House. Additionally, allies in Congress urged President Biden to take action, emphasizing the importance of delivering on his promise to address student loan debt.
Senator Elizabeth Warren, a Democrat from Massachusetts, stated that despite the setback, the fight for student loan relief is not over. She urged the President to utilize other tools at his disposal to cancel student debt. Supporters argue that fulfilling Biden's student loan plan will be crucial in mobilizing young and minority voters for his re-election bid, as it presents an opportunity to reduce the racial wealth gap.
The Supreme Court's 6-3 ruling on Friday invalidated Biden's plan to reduce the student debt of over 40 million people. In this decision, the court's conservative-leaning justices sided with six Republican-led states that had sued to challenge the program. The student debt forgiveness plan had garnered significant support from young and Black voters, who are seen as essential to Biden's prospects in the 2024 election.
In response to the ruling, the White House announced that President Biden would unveil new measures to assist borrowers later in the day, although no specific details were provided.
A February poll conducted by Economist/YouGov revealed that 53% of American adults supported Biden's loan relief plan. However, among 18 to 29-year-olds, support was overwhelming at 67%, and among Black Americans of all ages, support was even higher at 72%. To further push for student loan relief, various lobbying efforts are being organized. The Progressive Change Campaign Committee, with its one million members, is prepared to mobilize its supporters to flood the White House with emails and phone calls urging the President to explore alternative avenues. Similarly, the Debt Collective, with its 50,000 members, is collecting signatures from its members calling on the administration to try again.
While Biden's current plan focuses on forgiving up to $20,000 in federal loans for specific borrowers earning less than $125,000 per year (or $250,000 for households), liberal groups argue that the administration could look to the Higher Education Act of 1965 for broader authorities in managing the government's portfolio of student loans. However, legal experts caution that pursuing this route would likely be time-consuming and may not be completed before the 2024 elections.
With the end of the Covid-related pause on student loan payments approaching, most borrowers will have to resume making payments in October, further emphasizing the urgency for action on student loan relief.